Executive Summary & Recent Highlights [**Q2 2025 Performance Overview**](index=1&type=section&id=Recent%20Highlights) Spok Holdings reported strong Q2 2025 results with significant year-over-year growth in net income and adjusted EBITDA, driven by robust software operations bookings and an increase in wireless ARPU. The company also declared a regular quarterly dividend and raised its full-year 2025 financial guidance - Net Income and Adjusted EBITDA for Q2 2025 increased by **33%** and **6%**, respectively, from the prior year period[3](index=3&type=chunk) - Software operations bookings totaled **$11.7 million** in Q2 2025, up **34%** from Q2 2024, including 23 six-figure and 1 seven-figure customer contracts[3](index=3&type=chunk) - Software backlog reached **$65.2 million** at June 30, 2025, an increase of nearly **19%** from the prior year[3](index=3&type=chunk) - Wireless average revenue per unit (ARPU) was **$8.20** in Q2 2025, up nearly **5%** year-over-year[3](index=3&type=chunk) - Capital returned to stockholders in Q2 2025 totaled **$6.5 million**[3](index=3&type=chunk) - Cash and cash equivalents balance was **$20.2 million** at June 30, 2025, with no debt[3](index=3&type=chunk) - A regular quarterly dividend of **$0.3125 per share** was declared, payable on September 9, 2025[1](index=1&type=chunk) [**CEO's Commentary**](index=1&type=section&id=CEO's%20Commentary) CEO Vincent D. Kelly highlighted the company's strong execution in generating cash flow, returning capital to stockholders, and investing for future growth. He emphasized significant progress in net income, cash generation, software revenue growth (especially managed services), wireless ARPU trends, and software bookings, leading to increased 2025 financial guidance - Spok continues to focus on generating cash flow and returning capital to stockholders while investing for future growth[4](index=4&type=chunk) - Software revenue increased by **10%** year-over-year in Q2 2025, driven by **double-digit growth** in license revenue and **triple-digit growth** in managed services revenue[4](index=4&type=chunk) - The company is increasing its full-year 2025 guidance estimates for revenue and adjusted EBITDA, anticipating consolidated revenue growth and **over 11% growth potential** for adjusted EBITDA at the high-end[6](index=6&type=chunk) Financial Performance [**Consolidated Revenue Breakdown**](index=3&type=section&id=Consolidated%20Revenue%20Breakdown) Total revenue for Q2 2025 increased by **5.0%** year-over-year, reaching **$35.686 million**, primarily driven by a **10.0%** increase in software revenue. Wireless revenue saw a slight increase of **0.8%**, with strong growth in product and other revenue offsetting a decline in paging Consolidated Revenue Breakdown (in thousands) | Revenue (in thousands) | Q2 2025 | Q2 2024 | Change (%) | H1 2025 | H1 2024 | Change (%) | | :--------------------- | :------ | :------ | :--------- | :------ | :------ | :--------- | | Wireless revenue | $18,440 | $18,297 | 0.8% | $36,914 | $36,892 | 0.1% | | Paging revenue | $17,192 | $17,633 | (2.5)% | $34,799 | $35,603 | (2.3)% | | Product and other revenue | $1,248 | $664 | 88.0% | $2,115 | $1,289 | 64.1% | | Software revenue | $17,246 | $15,685 | 10.0% | $35,066 | $31,999 | 9.6% | | License | $2,394 | $1,697 | 41.1% | $5,025 | $4,323 | 16.2% | | Professional services - projects | $3,831 | $3,682 | 4.0% | $8,302 | $7,243 | 14.6% | | Professional services - managed services | $1,520 | $604 | 151.7% | $2,835 | $1,068 | 165.4% | | Hardware | $376 | $334 | 12.6% | $697 | $718 | (2.9)% | | Maintenance and subscription | $9,125 | $9,368 | (2.6)% | $18,207 | $18,647 | (2.4)% | | **Total revenue** | **$35,686** | **$33,982** | **5.0%** | **$71,980** | **$68,891** | **4.5%** | [**Operating Expenses and Profitability**](index=3&type=section&id=Operating%20Expenses%20and%20Profitability) Operating expenses increased modestly, while net income and adjusted EBITDA showed strong year-over-year growth for both the second quarter and first half of 2025, reflecting improved profitability. Cash and cash equivalents decreased, but capital returned to stockholders increased Operating Expenses and Profitability (in thousands) | Financial Metric (in thousands) | Q2 2025 | Q2 2024 | Change (%) | H1 2025 | H1 2024 | Change (%) | | :------------------------------ | :------ | :------ | :--------- | :------ | :------ | :--------- | | Operating expenses (GAAP) | $30,294 | $29,508 | 2.7% | $60,570 | $59,526 | 1.8% | | Net income (GAAP) | $4,552 | $3,425 | 32.9% | $9,748 | $7,661 | 27.2% | | Cash and cash equivalents (period end) | $20,242 | $23,875 | (15.2)% | $20,242 | $23,875 | (15.2)% | | Capital returned to stockholders | $6,477 | $6,329 | 2.3% | $14,424 | $13,715 | 5.2% | | Adjusted operating expenses (Non-GAAP) | $29,420 | $28,093 | 4.7% | $58,780 | $56,615 | 3.8% | | Adjusted EBITDA (Non-GAAP) | $7,489 | $7,048 | 6.3% | $15,693 | $14,583 | 7.6% | [**Key Operational Statistics**](index=4&type=section&id=Key%20Statistics) Software operations bookings surged by **34.1%** in Q2 2025, contributing to an **18.5%** increase in software backlog. Wireless ARPU also grew by **4.6%**, despite a **7.1%** decline in wireless units in service Key Operational Statistics | Key Statistic | Q2 2025 | Q2 2024 | Change (%) | H1 2025 | H1 2024 | Change (%) | | :-------------------------- | :------ | :------ | :--------- | :------ | :------ | :--------- | | Wireless units in service (000's) | 694 | 747 | (7.1)% | 694 | 747 | (7.1)% | | Wireless average revenue per unit (ARPU) | $8.20 | $7.84 | 4.6% | $8.21 | $7.85 | 4.6% | | Software operations bookings | $11,661 | $8,695 | 34.1% | $19,998 | $16,580 | 20.6% | | Software backlog (period end) | $65,187 | $55,006 | 18.5% | $65,187 | $55,006 | 18.5% | Financial Outlook [**Updated 2025 Guidance**](index=4&type=section&id=Updated%202025%20Guidance) Spok increased its full-year 2025 financial guidance, raising the lower end of the total revenue range and maintaining the upper end, while also increasing the lower end of the Adjusted EBITDA guidance Revised Full Year 2025 Guidance (in millions) | (Unaudited and in millions) | Current Guidance Full Year 2025 | Prior Guidance Full Year 2025 | | :-------------------------- | :------------------------------ | :---------------------------- | | | From | To | From | To | | Revenue | | | | | | Wireless | $71.5 | $73.5 | $69.0 | $72.0 | | Software | $66.5 | $70.0 | $65.0 | $70.0 | | Total Revenue | $138.0 | $143.5 | $134.0 | $142.0 | | Adjusted EBITDA | $28.5 | $32.5 | $27.5 | $32.5 | Company Information [**2025 Second Quarter Call Details**](index=4&type=section&id=2025%20Second%20Quarter%20Call) Management will host a conference call and webcast on July 30, 2025, at 5:00 p.m. ET to discuss the financial results, with details provided for accessing the live event and an OnDemand version - A conference call and webcast to discuss financial results will be held on Wednesday, July 30, 2025, at 5:00 p.m. Eastern Time[13](index=13&type=chunk)[14](index=14&type=chunk) - Access details include a webcast link (https://www.webcast-eqs.com/register/Spok_2Q_2025/en) and U.S. toll-free (877-407-0890) and international (1-201-389-0918) dial-in numbers[14](index=14&type=chunk) [**About Spok**](index=5&type=section&id=About%20Spok) Spok Holdings, Inc., headquartered in Plano, Texas, is a global leader in healthcare communications. The company delivers clinical information to care teams through its Spok Care Connect® platform to improve patient outcomes and enhance workflows - Spok Holdings, Inc. is a global leader in healthcare communications, headquartered in Plano, Texas[16](index=16&type=chunk) - The company's core offering is the Spok Care Connect® platform, which enhances workflows for clinicians and supports administrative compliance to improve patient outcomes[16](index=16&type=chunk) - Customers send over 70 million messages each month through Spok® solutions[16](index=16&type=chunk) [**Non-GAAP Financial Measures**](index=5&type=section&id=Non-GAAP%20Financial%20Measures) This section defines non-GAAP financial measures such as adjusted operating expenses and adjusted EBITDA, explaining their exclusion criteria and rationale for use by management and investors. It also highlights the inherent limitations of these measures and advises against relying on them in isolation from GAAP results - Adjusted operating expenses exclude depreciation and accretion expense, impairment of intangible assets, and severance and restructuring costs[18](index=18&type=chunk) - Adjusted EBITDA represents net income/(loss) before interest income/expense, income tax benefit/expense, depreciation and accretion expense, stock-based compensation expense, impairment of intangible assets, and severance and restructuring[18](index=18&type=chunk) - These non-GAAP measures provide useful information for management and investors to evaluate core operating performance and trends, but they are not a substitute for GAAP measures and have inherent limitations[19](index=19&type=chunk)[21](index=21&type=chunk) [**Safe Harbor Statement**](index=7&type=section&id=Safe%20Harbor%20Statement%20under%20the%20Private%20Securities%20Litigation%20Reform%20Act) The Safe Harbor Statement clarifies that forward-looking statements involve risks and uncertainties that may cause actual results to differ materially. It lists various factors, including operational challenges, economic conditions, market competition, product defects, and cybersecurity threats - Statements regarding future operating and financial performance are forward-looking and subject to risks and uncertainties[22](index=22&type=chunk) - Key risk factors include managing wireless network rationalization, retaining key personnel, economic conditions (e.g., recession, inflation), competition from new technologies, declining paging units, and undetected product defects or security vulnerabilities[22](index=22&type=chunk)[24](index=24&type=chunk) - Other risks involve reliance on third-party IT systems, cyberattacks, data breaches, and regulatory changes affecting the healthcare industry[24](index=24&type=chunk) Financial Statements [**Condensed Consolidated Statements of Operations**](index=9&type=section&id=SPOK%20HOLDINGS%2C%20INC.%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The condensed consolidated statements of operations show total revenue of **$35.686 million** for Q2 2025, with net income of **$4.552 million**, resulting in basic net income per common share of **$0.22**. Operating income improved to **15.1%** of total revenue Condensed Consolidated Statements of Operations (Unaudited and in thousands) | | | For the three months ended | | | | For the six months ended | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | | 6/30/2025 | | 6/30/2024 | | 6/30/2025 | | 6/30/2024 | | Revenue: | | | | | | | | | | Wireless | $ | 18,440 | $ | 18,297 | $ | 36,914 | $ | 36,892 | | Software | | 17,246 | | 15,685 | | 35,066 | | 31,999 | | Total revenue | | 35,686 | | 33,982 | | 71,980 | | 68,891 | | Operating expenses: | | | | | | | | | | Cost of revenue (exclusive of items shown separately | | | | | | | | | | below) | | 7,331 | | 7,163 | | 14,543 | | 14,302 | | Research and development | | 3,024 | | 3,176 | | 6,079 | | 6,127 | | Technology operations | | 5,895 | | 6,181 | | 11,745 | | 12,480 | | Selling and marketing | | 4,267 | | 3,506 | | 9,112 | | 7,655 | | General and administrative | | 8,903 | | 8,067 | | 17,301 | | 16,051 | | Depreciation and accretion | | 854 | | 1,067 | | 1,713 | | 2,135 | | Severance and restructuring | | 20 | | 348 | | 77 | | 776 | | Total operating expenses | | 30,294 | | 29,508 | | 60,570 | | 59,526 | | % of total revenue | | 84.9 % | | 86.8 % | | 84.1 % | | 86.4 % | | Operating income | | 5,392 | | 4,474 | | 11,410 | | 9,365 | | % of total revenue | | 15.1 % | | 13.2 % | | 15.9 % | | 13.6 % | | Interest income | | 256 | | 391 | | 475 | | 645 | | Other income (expense) | | 734 | | (14) | | 756 | | (16) | | Income before income taxes | | 6,382 | | 4,851 | | 12,641 | | 9,994 | | Provision for income taxes | | (1,830) | | (1,426) | | (2,893) | | (2,333) | | Net income | $ | 4,552 | $ | 3,425 | $ | 9,748 | $ | 7,661 | | Basic net income per common share | $ | 0.22 | $ | 0.17 | $ | 0.48 | $ | 0.38 | | Diluted net income per common share | $ | 0.22 | $ | 0.17 | $ | 0.47 | $ | 0.37 | | Basic weighted average common shares outstanding | | 20,580,044 | | 20,252,452 | | 20,510,561 | | 20,211,500 | | Diluted weighted average common shares outstanding | | 20,750,971 | | 20,473,751 | | 20,746,786 | | 20,500,335 | | Cash dividends declared per common share | | 0.3125 | | 0.3125 | | 0.6250 | | 0.6250 | [**Condensed Consolidated Balance Sheets**](index=10&type=section&id=SPOK%20HOLDINGS%2C%20INC.%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets were **$208.670 million**, with cash and cash equivalents at **$20.242 million**. Total liabilities stood at **$57.734 million**, and total stockholders' equity was **$150.936 million** Condensed Consolidated Balance Sheets (in thousands) | | | 6/30/2025 | | 12/31/2024 | | | :--- | :--- | :--- | :--- | :--- | :--- | | ASSETS | | (Unaudited) | | | | | Current assets: | | | | | | | Cash and cash equivalents | $ | 20,242 | $ | 29,145 | | | Accounts receivable, net | | 25,819 | | 21,950 | | | Prepaid expenses | | 9,620 | | 9,362 | | | Other current assets | | 794 | | 840 | | | Total current assets | | 56,475 | | 61,297 | | | Non-current assets: | | | | | | | Property and equipment, net | | 6,083 | | 5,952 | | | Operating lease right-of-use assets | | 7,317 | | 8,249 | | | Goodwill | | 99,175 | | 99,175 | | | Deferred income tax assets, net | | 39,088 | | 41,686 | | | Other non-current assets | | 532 | | 744 | | | Total non-current assets | | 152,195 | | 155,806 | | | Total assets | $ | 208,670 | $ | 217,103 | | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | Current liabilities: | | | | | | | Accounts payable | $ | 3,836 | $ | 5,630 | | | Accrued compensation and benefits | | 5,877 | | 7,363 | | | Deferred revenue | | 28,541 | | 28,366 | | | Operating lease liabilities | | 2,779 | | 2,904 | | | Other current liabilities | | 4,411 | | 4,511 | | | Total current liabilities | | 45,444 | | 48,774 | | | Non-current liabilities: | | | | | | | Asset retirement obligations | | 5,760 | | 5,945 | | | Operating lease liabilities | | 5,056 | | 5,869 | | | Other non-current liabilities | | 1,474 | | 1,769 | | | Total non-current liabilities | | 12,290 | | 13,583 | | | Total liabilities | | 57,734 | | 62,357 | | | Commitments and contingencies | | | | | | | Stockholders' equity: | | | | | | | Preferred stock | $ | — | $ | — | | | Common stock | | 2 | | 2 | | | Additional paid-in capital | | 105,528 | | 105,736 | | | Accumulated other comprehensive loss | | (1,762) | | (1,784) | | | Retained earnings | | 47,168 | | 50,792 | | | Total stockholders' equity | | 150,936 | | 154,746 | | | Total liabilities and stockholders' equity | $ | 208,670 | $ | 217,103 | | [**Condensed Consolidated Statements of Cash Flows**](index=11&type=section&id=SPOK%20HOLDINGS%2C%20INC.%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash provided by operating activities was **$9.290 million**, while net cash used in investing and financing activities was **$1.090 million** and **$17.125 million**, respectively, leading to a net decrease in cash and cash equivalents Condensed Consolidated Statements of Cash Flows (Unaudited and in thousands) | (Unaudited and in thousands) | | :--- | | | | | For the six months ended | | | :--- | :--- | :--- | :--- | :--- | | | | 6/30/2025 | | 6/30/2024 | | Operating activities: | | | | | | Net income | $ | 9,748 | $ | 7,661 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | Depreciation and accretion | | 1,713 | | 2,135 | | Deferred income tax expense | | 2,615 | | 2,313 | | Stock-based compensation | | 2,493 | | 2,307 | | Gain on sale of domain name | | (701) | | — | | Provisions for credit losses, service credits and other | | 539 | | 262 | | Changes in assets and liabilities: | | | | | | Accounts receivable | | (4,415) | | 223 | | Prepaid expenses and other assets | | (18) | | (1,232) | | Net operating lease liabilities | | (6) | | (11) | | Accounts payable and other liabilities | | (3,201) | | (3,046) | | Deferred revenue | | 523 | | (1,192) | | Net cash provided by operating activities | | 9,290 | | 9,420 | | Investing activities: | | | | | | Purchases of property and equipment | | (1,791) | | (1,516) | | Proceeds from sale of domain name | | 701 | | — | | Net cash used in investing activities | | (1,090) | | (1,516) | | Financing activities: | | | | | | Cash distributions to stockholders | | (14,424) | | (13,715) | | Proceeds from issuance of common stock under the Employee Stock Purchase Plan | | 142 | | 131 | | Purchase of common stock for tax withholding on vested equity awards | | (2,843) | | (2,428) | | Net cash used in financing activities | | (17,125) | | (16,012) | | Effect of exchange rate on cash and cash equivalents | | 22 | | (6) | | Net decrease in cash and cash equivalents | | (8,903) | | (8,114) | | Cash and cash equivalents, beginning of period | | 29,145 | | 31,989 | | Cash and cash equivalents, end of period | $ | 20,242 | $ | 23,875 | | Supplemental disclosure: | | | | | | Income taxes paid | $ | 114 | $ | 241 | [**Wireless Units in Service and ARPU**](index=12&type=section&id=SPOK%20HOLDINGS%2C%20INC.%20UNITS%20IN%20SERVICE%2C%20MARKET%20SEGMENTS%2C%20AND%20AVERAGE%20REVENUE%20PER%20UNIT%20%28ARPU%29) As of June 30, 2025, total wireless units in service decreased to **694,000**, a **7.1%** decline year-over-year, though the average revenue per unit (ARPU) increased by **4.6%** to **$8.20**. Healthcare remains the dominant market segment, accounting for **85.7%** of total units Wireless Units in Service, Market Segments, and ARPU (Unaudited and in thousands) | | | | | | | | | | For the three months ended | | | | | | | | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | | 6/30/2025 | | 3/31/2025 | | 12/31/2024 | | 9/30/2024 | | | 6/30/2024 | | 3/31/2024 | | 12/31/2023 | | 9/30/2023 | | Account size ending | | | | | | | | | | | | | | | | | | | units in service | | | | | | | | | | | | | | | | | | | (000's) | | | | | | | | | | | | | | | | | | | 1 to 100 units | | 38 | | 39 | | 40 | | 41 | | | 42 | | 43 | | 44 | | 46 | | 101 to 1,000 units | | 116 | | 121 | | 120 | | 125 | | | 128 | | 135 | | 142 | | 143 | | >1,000 units | | 540 | | 545 | | 560 | | 564 | | | 577 | | 575 | | 579 | | 596 | | Total | | 694 | | 705 | | 720 | | 730 | | | 747 | | 753 | | 765 | | 785 | | Market segment as a | | | | | | | | | | | | | | | | | | | percent of total ending units in | | | | | | | | | | | | | | | | | | | service | | | | | | | | | | | | | | | | | | | Healthcare | | 85.7 % | | 85.5 % | | 85.6 % | | 85.7 % | | | 85.8 % | | 86.1 % | | 85.9 % | | 86.0 % | | Government | | 4.0 % | | 4.0 % | | 4.0 % | | 4.1 % | | | 4.4 % | | 4.1 % | | 4.2 % | | 4.2 % | | Large enterprise | | 3.8 % | | 3.8 % | | 3.9 % | | 4.0 % | | | 4.0 % | | 3.9 % | | 4.1 % | | 4.1 % | | (1) Other | | 6.5 % | | 6.7 % | | 6.5 % | | 6.2 % | | | 5.8 % | | 5.9 % | | 5.8 % | | 5.7 % | | Total | | 100.0 % | | 100.0 % | | 100.0 % | | 100.0 % | | | 100.0 % | | 100.0 % | | 100.0 % | | 100.0 % | | Account size ARPU | | | | | | | | | | | | | | | | | | | 1 to 100 units | $ | 12.88 | $ | 13.04 | $ | 13.08 | $ | 12.70 | | $ | 12.51 | $ | 12.66 | $ | 12.57 | $ | 12.02 | | 101 to 1,000 units | | 9.72 | | 9.64 | | 9.60 | | 9.19 | | | 9.06 | | 9.14 | | 9.16 | | 8.75 | | >1,000 units | | 7.54 | | 7.59 | | 7.50 | | 7.33 | | | 7.21 | | 7.23 | | 7.15 | | 6.97 | | Total | $ | 8.20 | $ | 8.24 | $ | 8.16 | $ | 7.95 | | $ | 7.84 | $ | 7.89 | $ | 7.84 | $ | 7.59 | [**Reconciliation of Non-GAAP Measures**](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP operating expenses to adjusted operating expenses and net income to adjusted EBITDA for both the three and six months ended June 30, 2025 and 2024, illustrating the adjustments made for non-cash and non-recurring items Adjusted Operating Expenses Reconciliation (Unaudited and in thousands) | | | For the three months ended | | | For the six months ended | | | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | 6/30/2025 | | 6/30/2024 | | 6/30/2025 | | | 6/30/2024 | | Operating expenses | $ | 30,294 | $ | 29,508 | $ | 60,570 | $ | 59,526 | | Add back: | | | | | | | | | | Depreciation and accretion | | (854) | | (1,067) | | (1,713) | | (2,135) | | Severance and restructuring | | (20) | | (348) | | (77) | | (776) | | Adjusted operating expenses | $ | 29,420 | $ | 28,093 | $ | 58,780 | $ | 56,615 | Adjusted EBITDA Reconciliation (Unaudited and in thousands) | | | For the three months ended | | | | | For the six months ended | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | 6/30/2025 | | 6/30/2024 | | 6/30/2025 | | | 6/30/2024 | | Net income | $ | 4,552 $ | | 3,425 $ | | 9,748 | $ | 7,661 | | Add back: | | | | | | | | | | Provision for income taxes | | 1,830 | | 1,426 | | 2,893 | | 2,333 | | Other income (expense) | | (734) | | 14 | | (756) | | 16 | | Interest income | | (256) | | (391) | | (475) | | (645) | | Depreciation and accretion | | 854 | | 1,067 | | 1,713 | | 2,135 | | EBITDA | $ | 6,246 $ | | 5,541 $ | | 13,123 | $ | 11,500 | | Adjustments: | | | | | | | | | | Stock-based compensation | | 1,223 | | 1,159 | | 2,493 | | 2,307 | | Severance and restructuring | | 20 | | 348 | | 77 | | 776 | | Adjusted EBITDA | $ | 7,489 $ | | 7,048 $ | | 15,693 | $ | 14,583 |

Group 1 - Stork Research focuses on micro-cap and small-cap equities that exhibit strong growth at reasonable valuations, emphasizing a GARP (Growth at a Reasonable Price) strategy [2] - The analysis covers sectors such as industrials and technology, which are historically rich in multi-bagger potential [2] - The geographic scope of Stork Research includes the U.S., Canada, and select European markets, specifically Poland and Germany [2] Group 2 - Stork Research aims to uncover inefficiencies in the market and identify unique, high-conviction investment ideas that are often overlooked [2] - The firm typically avoids highly cyclical industries but may target recovery-phase opportunities or contrarian plays in overvalued names [2]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, detailing financial position, operational performance, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects a decrease in total assets to $204.5 million, driven by reduced cash and cash equivalents Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $19,873 | $29,145 | | Total current assets | $50,405 | $61,297 | | Goodwill | $99,175 | $99,175 | | Total assets | $204,476 | $217,103 | | **Liabilities & Equity** | | | | Total current liabilities | $40,767 | $48,774 | | Total liabilities | $52,738 | $62,357 | | Total stockholders' equity | $151,738 | $154,746 | | Total liabilities and stockholders' equity | $204,476 | $217,103 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue increased to $36.3 million in Q1 2025, driven by software growth, leading to a net income of $5.2 million Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total revenue** | **$36,294** | **$34,909** | | Wireless revenue | $18,474 | $18,595 | | Software revenue | $17,820 | $16,314 | | Total operating expenses | $30,276 | $30,018 | | **Operating income** | **$6,018** | **$4,891** | | **Net income** | **$5,196** | **$4,236** | | Diluted net income per common share | $0.25 | $0.21 | | Cash dividends declared per common share | $0.3125 | $0.3125 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated $2.3 million in Q1 2025, with a net decrease in cash and cash equivalents of $9.3 million Cash Flow Summary for the Three Months Ended March 31 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,253 | $1,998 | | Net cash used in investing activities | ($745) | ($875) | | Net cash used in financing activities | ($10,790) | ($9,814) | | **Net decrease in cash and cash equivalents** | **($9,272)** | **($8,649)** | | Cash and cash equivalents, end of period | $19,873 | $23,340 | [Unaudited Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Unaudited%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, business operations, and financial statement components, including revenue disaggregation and dividends - Spok is a global leader in healthcare communications, delivering clinical information to care teams through wireless messaging and enterprise-wide systems for contact centers, clinical alerting, and mobile communications[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) Revenue Disaggregation by Type (in thousands) | Revenue Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Wireless Revenue** | **$18,474** | **$18,595** | | Paging revenue | $17,607 | $17,970 | | Product and other revenue | $867 | $625 | | **Software Revenue** | **$17,820** | **$16,314** | | License | $2,631 | $2,626 | | Professional services - projects | $4,471 | $3,561 | | Professional services - managed services | $1,315 | $464 | | Hardware | $321 | $384 | | Maintenance | $9,082 | $9,279 | | **Total Revenue** | **$36,294** | **$34,909** | - The balance of remaining performance obligations was **$63.2 million** as of March 31, 2025. The company expects to recognize approximately **$36.5 million** of this amount over the next 12 months[45](index=45&type=chunk) - The company declared a quarterly cash dividend of **$0.3125 per share** on February 26, 2025, totaling **$6.6 million**. A subsequent dividend of the same amount was declared on April 30, 2025[58](index=58&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, highlighting revenue growth, operating income increase, and liquidity position Q1 2025 vs Q1 2024 Results Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $36,294 | $34,909 | 4.0% | | Wireless Revenue | $18,474 | $18,595 | (0.7)% | | Software Revenue | $17,820 | $16,314 | 9.2% | | Operating Income | $6,018 | $4,891 | 23.0% | | Net Income | $5,196 | $4,236 | 22.7% | [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Total revenue increased by 4.0% year-over-year, driven by software growth, while wireless revenue saw a slight decline - The decrease in wireless revenue was driven by a secular decline in wireless units in service (from **753k** to **705k** YoY), which was partially offset by an increase in ARPU from **$7.89** to **$8.24** due to price increases initiated in September 2024[101](index=101&type=chunk) - Software revenue growth was primarily due to increased professional services revenue, resulting from higher sales and hiring efforts to align staffing with a growing backlog[106](index=106&type=chunk) - Selling and marketing expenses increased by **$0.7 million (16.8%)** due to additional headcount, higher advertising and event expenses, and increased commissions related to software bookings[110](index=110&type=chunk) - Technology operations expenses decreased by **$0.4 million (7.1%)** due to network rationalization efforts, which reduced the number of active transmitters by **6.3%** year-over-year[109](index=109&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash from operations and its cash balance, deemed sufficient for future needs - As of March 31, 2025, the company held cash and cash equivalents of **$19.9 million**[113](index=113&type=chunk) Cash Flow Summary for the Three Months Ended March 31 (in thousands) | Activity | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $2,253 | $1,998 | $255 | | Net cash used in investing activities | ($745) | ($875) | $130 | | Net cash used in financing activities | ($10,790) | ($9,814) | ($976) | - The Board of Directors authorized a share repurchase program for up to **$10 million** of the company's common stock in February 2022[118](index=118&type=chunk) [Commitments and Contingencies](index=26&type=section&id=Commitments%20and%20Contingencies) Total contractual obligations as of March 31, 2025, amounted to $14.35 million, including operating leases and purchase obligations Contractual Obligations as of March 31, 2025 (in thousands) | Obligation Type | Total | 1 year or less | 1 to 3 years | 3 to 5 years | More than 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating lease obligations | $9,761 | $3,201 | $4,065 | $1,515 | $980 | | Unconditional purchase obligations | $4,589 | $2,218 | $2,371 | $— | $— | | **Total contractual obligations** | **$14,350** | **$5,419** | **$6,436** | **$1,515** | **$980** | [Quantitative and Qualitative Disclosures about Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports minimal exposure to market risk, with no outstanding debt and immaterial foreign currency exchange risk - As of March 31, 2025, the company had no outstanding debt and therefore no material exposure to interest rate risk[135](index=135&type=chunk) - The financial impact of transactions in foreign currencies is immaterial, resulting in no material exposure to foreign currency exchange rate risk[136](index=136&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - Management, including the principal executive officer and principal financial officer, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[137](index=137&type=chunk) - No changes were made to the company's internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[138](index=138&type=chunk) [PART II. OTHER INFORMATION](index=27&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) No material changes to legal proceedings were reported during Q1 2025, consistent with the 2024 Annual Report - There have been no material changes during the three months ended March 31, 2025, to the commitments and contingencies previously reported in the 2024 Annual Report[83](index=83&type=chunk)[139](index=139&type=chunk) [Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) The risk factors disclosed in the 2024 Annual Report on Form 10-K have not materially changed during Q1 2025 - The risk factors included in the 2024 Annual Report have not materially changed during the three months ended March 31, 2025[140](index=140&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares of its common stock during the three months ended March 31, 2025 - The Company did not repurchase any shares of its common stock during the three months ended March 31, 2025[141](index=141&type=chunk) [Other Information](index=28&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q1 2025 - During the three months ended March 31, 2025, no director or officer of the Company adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement'[142](index=142&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed, including CEO and CFO certifications and Inline XBRL financial data files - The exhibits filed with this report include certifications from the Chief Executive Officer and Chief Financial Officer, as well as Inline XBRL documents[143](index=143&type=chunk)[145](index=145&type=chunk)

Group 1: Earnings Performance - Spok Holdings reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and up from $0.21 per share a year ago, representing an earnings surprise of 38.89% [1] - The company posted revenues of $36.29 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.75%, compared to year-ago revenues of $34.91 million [2] Group 2: Stock Performance and Outlook - Spok shares have declined approximately 10.2% since the beginning of the year, while the S&P 500 has decreased by 5.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $34.3 million, and for the current fiscal year, it is $0.79 on revenues of $138 million [7] Group 3: Industry Context - The Wireless National industry, to which Spok belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Cambium (CMBM), another company in the same industry, is expected to report a quarterly loss of $0.11 per share, reflecting a year-over-year change of +76.1%, with revenues anticipated to be $45.53 million, up 7.5% from the previous year [9]

Financial Data and Key Metrics Changes - In Q1 2025, total GAAP revenue was $36.3 million, up more than 7% from $33.9 million in the prior quarter and nearly 4% from $34.9 million in Q1 2024 [24] - GAAP net income totaled $5.2 million or $0.25 per diluted share, an increase from $4.2 million or $0.21 per diluted share in 2024 [23] - Adjusted EBITDA reached $8.2 million, reflecting a nearly 9% increase from the same quarter in 2024 [29] Business Line Data and Key Metrics Changes - Software revenue was $17.8 million, up 9.2% from the prior year quarter, while wireless revenue was $18.5 million, nearly flat compared to Q1 2024 [24] - Professional services revenue increased by nearly 44% year over year, totaling $5.8 million, with managed services revenue accounting for $1.3 million, up more than 180% from $500,000 in Q1 2024 [27] - Software backlog increased by more than 15% year over year, indicating strong future revenue potential [9] Market Data and Key Metrics Changes - The average revenue per unit (ARPU) for wireless services increased by 4.4% year over year to $824, driven by prior pricing actions and sales of new products [24] - Net unit churn improved to 6.4% from 7.2% in the prior year, reflecting better customer retention [24] Company Strategy and Development Direction - The company aims to generate cash and return capital to shareholders while investing in growth, maintaining a disciplined expense management approach [5][12] - The strategic focus includes continued investment in wireless and software solutions, growing the revenue base, and a stockholder-friendly capital allocation plan [12] - The company has transformed into a leading healthcare communications provider, emphasizing its commitment to enhancing patient care and safety through technology [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite macroeconomic uncertainties, reiterating guidance for 2025 [16][31] - The company anticipates annual free cash flow in the range of $24 to $28 million and expects to exit 2025 with cash balances between $23 million and $27 million [30] - Management highlighted a strong start to 2025, with expectations for continued growth driven by software solutions and a solid customer base [33] Other Important Information - The company has maintained a strong reputation in the healthcare communications industry, recognized as a top clinical communications platform for eight of the past ten years [15] - The HIMSS conference experience was positive, with a focus on prequalifying meetings leading to better engagement and interest in new products [48][50] Q&A Session Summary Question: Is there any seasonality with the larger 7 figure contracts? - Management noted no seasonality observed, with a positive trend in contract signings [38] Question: What drove the strong wireless product revenue? - The increase was primarily due to a pricing initiative for unreturned pagers, expected to yield an annualized benefit of about $1 million [40] Question: What drove the improvement in gross margin? - Gross margin improved due to strong revenue performance, though fluctuations may occur based on quarterly results [41][42] Question: What is the conversion timeline for the software backlog? - Approximately half of the backlog is services, with maintenance revenue typically recognized over a year and services over nine to fifteen months [43][44] Question: How was the experience at the HIMSS conference? - The conference was better than the previous year, with a focused approach leading to successful customer engagements [48][50] Question: What is the strategy for managed services? - Managed services provide fixed costs for customers, aiding in revenue recognition and reducing churn [52][53] Question: Are the new logos significant customers? - Both new logos are meaningful wins, with the company having pursued them for some time [56][59]

Financial Data and Key Metrics Changes - In Q1 2025, GAAP net income was $5.2 million or $0.25 per diluted share, up from $4.2 million or $0.21 per diluted share in Q1 2024 [22] - Total GAAP revenue for Q1 2025 was $36.3 million, an increase of over 7% from $33.9 million in the prior quarter and nearly 4% from $34.9 million in Q1 2024 [23] - Adjusted EBITDA totaled $8.2 million, reflecting a nearly 9% increase from the same quarter in 2024 [28] Business Line Data and Key Metrics Changes - Software revenue reached $17.8 million, up 9.2% from the prior year quarter, while wireless revenue was $18.5 million, nearly flat compared to Q1 2024 [23] - Professional services revenue was $5.8 million, up nearly 44% from $4 million in Q1 2024, with managed services revenue totaling $1.3 million, representing over 22% of total professional services revenue [26] - Software backlog increased by more than 15% year over year, indicating strong future revenue potential [42] Market Data and Key Metrics Changes - The company maintains the largest paging network in the United States, serving over 2,200 hospitals [12] - Wireless average revenue per unit (ARPU) increased by 4.4% year over year to $824, driven by pricing actions and sales of new products [23] Company Strategy and Development Direction - The company aims to generate cash and return capital to shareholders while investing in business growth, focusing on four strategic tenets: investment in wireless and software solutions, revenue growth, disciplined expense management, and stockholder-friendly capital allocation [10][9] - The company is committed to maintaining a strong position in healthcare communications, leveraging its established solutions and customer base to create shareholder value [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and reiterated guidance for 2025, expecting total revenue to range from $134 million to $142 million [31] - The company believes that current macroeconomic uncertainties will not materially impact revenue or supply chain, maintaining a positive outlook for the healthcare industry [14] Other Important Information - The company plans to invest between $11 million and $12 million in product research and development in 2025 to fuel future software revenue growth [9] - The company has returned over $700 million to shareholders over the past 20 years through dividends and share repurchases [9] Q&A Session Summary Question: Is there any seasonality with the larger 7-figure contracts? - Management noted no seasonality observed, with a positive trend in contract signings [36][37] Question: What drove the strong wireless product revenue? - The increase was primarily due to a price increase for unreturned pagers, expected to yield an annualized benefit of about $1 million [38][39] Question: What drove the improvement in gross margin? - Gross margin improved due to strong revenue performance, but fluctuations are expected based on revenue dynamics [40][41] Question: What is the conversion timeline for the software backlog? - Approximately half of the backlog is services, which typically convert over a 9 to 15-month period [42][43] Question: What was the experience at the HIMSS conference? - The conference was better than the previous year, with a focused approach leading to successful customer engagements [48][49] Question: What is the strategy for professional services? - The focus is on managed services, providing fixed costs for customers and improving revenue recognition [51][52] Question: Are the two new logos significant customers? - Both new customers are meaningful wins that the company has pursued for some time [58][60]

Financial Performance - Q1 2025 - Spok generated $5.2 million of GAAP net income and $8.2 million of adjusted EBITDA[26] - Total revenue reached $36.3 million, compared to $34.9 million in the same period last year[27] - Wireless revenue was $18.5 million[27] - Software revenue increased to $17.8 million from $16.3 million[27] - The company returned $7.9 million to stockholders through dividends[29] - Cash and equivalents balance was $19.9 million with no debt[29] Strategic Focus & Capital Allocation - The company's strategic goal is to run the business profitably and generate cash, returning capital to stockholders[10] - Over $700 million has been returned to stockholders since 2004[12] - The company anticipates returning more than $27 million in capital to stockholders in 2025[12] Business Highlights - The company has approximately 705,000 wireless units in service as of March 31, 2025[19] - Over 2,200 hospitals use Spok Communications[19] - Software operations bookings increased nearly 6% year-over-year[24] - Software backlog is up more than 15% from the first quarter of 2024[24] 2025 Financial Outlook - Total revenue is projected to be between $134.0 million and $142.0 million[32] - Wireless revenue is expected to be between $69.0 million and $72.0 million[32] - Software revenue is projected to be between $65.0 million and $70.0 million[32] - Adjusted EBITDA is expected to be between $27.5 million and $32.5 million[32]

NEWS RELEASE Exhibit 99.1 Net Income and Adjusted EBITDA Up From Prior Year Period End Software Backlog Up More Than 15% From Prior Year Professional Services Revenue Up Nearly 44% From Q1 2024 Plano, Tx. (April 30, 2025) - Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the first quarter ended March 31, 2025. In addition, the Company's Board of Directors declared a regular quarterly dividend of $0.3125 per share, payable on June 24, 2025, to sto ...

Revenue Performance - Total revenue for 2024 was $137,653 thousand, a decrease of 1.0% compared to $139,025 thousand in 2023[185]. - Wireless revenue decreased to $73,523 thousand, down 3.2% from $75,968 thousand in 2023, reflecting a decline in units in service from approximately 765 thousand to 720 thousand[196]. - Software revenue increased to $64,130 thousand, up 1.7% from $63,057 thousand in 2023, driven by higher professional services revenue[200]. Income and Expenses - Operating income for 2024 was $18,965 thousand, a decrease of 10.7% compared to $21,228 thousand in 2023[185]. - Net income for 2024 was $14,965 thousand, down 4.5% from $15,666 thousand in 2023[185]. - Research and development expenses rose to $11,548 thousand, an increase of 9.5% from $10,549 thousand in 2023[185]. - Cost of revenue increased by $1.6 million, or 6.0%, for the year ended December 31, 2024, compared to 2023, primarily due to additional professional services personnel[207]. - Selling and marketing expenses decreased by $0.5 million, or 3.1%, for the year ended December 31, 2024, attributed to the amortization of commission expenses[210]. - General and administrative expenses increased by $0.1 million, or 0.4%, for the year ended December 31, 2024, remaining largely in line with 2023[211]. Employee and Operational Metrics - The number of full-time employees (FTEs) increased to 410, up 6.8% from 384 in 2023[185]. - Technology operations expenses decreased by $1.5 million, or 5.9%, for the year ended December 31, 2024, due to a 5.2% decline in the number of active transmitters[209]. Cash Flow and Dividends - Net cash provided by operating activities was $28.9 million for the year ended December 31, 2024, compared to $26.2 million in 2023[228]. - Cash and cash equivalents at December 31, 2024, totaled $29.1 million, with a majority held in accounts exceeding insured limits[218]. - The company intends to use cash on hand for working capital, operations, and potential acquisitions[220]. - A regular quarterly cash dividend of $0.3125 per share was declared, amounting to approximately $6.4 million, expected to be paid from available cash[223]. Obligations and Financial Health - Total contractual obligations as of December 31, 2024, amount to $15,444,000, with $10,548,000 due within one year[233]. - Operating lease obligations total $10,548,000, with $3,479,000 due in less than one year and $4,285,000 due in 1 to 3 years[233]. - The company maintained a valuation allowance of $2.3 million related to federal foreign tax credits and certain state net operating losses[244]. - There were no outstanding borrowings or associated debt service requirements as of December 31, 2024[250]. Impairment and Tax Considerations - The company recorded no impairment of goodwill for the years ended December 31, 2024, 2023, and 2022[246]. - The financial impact of transactions billed in foreign currencies is immaterial, indicating no significant exposure to foreign currency exchange rate fluctuations[251]. - Inflation has not materially affected operations, with system equipment and operating costs remaining stable[236]. - The assessment of deferred income tax assets requires significant judgment, with the company considering future taxable income projections[242]. New Products and Services - The company introduced the GenA pager, featuring advanced encryption and security capabilities, aimed at enhancing service offerings in the healthcare sector[198]. - Maintenance revenue is expected to remain flat or increase marginally, driven by enhancements in existing software solutions[203]. Restructuring and Severance - Severance and restructuring expenses increased to $1.1 million in 2024 from $0.6 million in 2023, primarily due to lease termination costs[213]. - No probable losses were identified for the year ended December 31, 2024[234]. - The company did not identify any triggering events for long-lived assets in 2024, with no impairment recorded[247].

Financial Data and Key Metrics Changes - In 2024, GAAP net income totaled $15 million or $0.73 per diluted share, compared to $15.7 million or $0.77 per diluted share in 2023 [45] - Total GAAP revenues were $137.7 million, down from $139 million in 2023 [45] - Adjusted EBITDA was $29.2 million in 2024, down from $30.3 million in 2023, reflecting lower consolidated revenue but maintaining a healthy margin of over 21% [56] Business Line Data and Key Metrics Changes - Software revenue increased to $64.1 million in 2024, driven by a nearly 22% increase in professional services revenue [46] - Professional services revenue reached $17.9 million, up 21.6% from $14.7 million in 2023 [51] - Wireless revenue was $73.5 million, down from $76 million in the prior year, with improvements in average revenue per unit (ARPU) [45][46] Market Data and Key Metrics Changes - Software operations bookings totaled $34.1 million, up more than 13% from the prior year, marking the highest levels in five years [31] - The company executed 82 six and seven-figure customer contracts, a 22% increase from 2023 [34] - Net unit churn improved to a decline of 5.9% in 2024, compared to a 6.4% decline in 2023 [47] Company Strategy and Development Direction - The strategic focus remains on growing software revenue, generating cash, and returning capital to stockholders [8][24] - The company aims to enhance its product offerings, particularly the Spok Care Connect suite, and has invested significantly in research and development [15][19] - The company has a strong commitment to maintaining a stockholder-friendly capital allocation plan, returning approximately $77 million to stockholders since the strategic pivot [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute in 2025, with expectations for total revenue to range from $134 million to $142 million [58] - The company anticipates a higher mix of software revenue and continued focus on expense management to drive profitability [58][59] - Management highlighted the importance of customer satisfaction and the company's strong reputation in the healthcare communication space [32][19] Other Important Information - The company returned $6.3 million in dividends in Q4 2024 and expects to pay dividends in excess of $27 million in 2025 [25][26] - The company has generated over $1 billion of free cash flow since its inception in 2004 [26] Q&A Session Summary Question: Can you talk about the key attributes of software operations bookings growth? - Management indicated that growth was driven by a mix of new contracts, existing customer renewals, and incremental sales to current clients [67][70] Question: Can you elaborate on the EBITDA guidance and key contributors for earnings leverage? - Management noted that the expected leverage is primarily due to a greater mix of software sales and improved efficiency in professional services [76][79] Question: Why did the company move its headquarters to Plano? - The move was made to consolidate operations and reduce costs, as many employees were already working remotely [87][90] Question: Is it accurate to assume that about 80% of bookings come from recurring customers? - Management confirmed that approximately 80% of bookings are from existing customers, with a significant portion being recurring revenue [93][96] Question: Can you provide an update on the product roadmap and timelines? - Management detailed several updates to the product offerings, including a new user interface and enhancements to the Care Connect suite, with ongoing developments expected throughout 2025 [107][110]